Rabigh Refining and Petrochemical Co. (Petro Rabigh) reported SAR 294 million net profit for Q3 2014, soaring 2,000% year-on-year from SAR 14 million and 70.93% quarter-on-quarter from SAR 172 million.
At the nine-month level, the company posted net earnings of SAR 879 million (SAR 1 a share), against SAR 881 million losses (SAR 1.01 a share) in the year-ago period.
The reason for improvement in net profit y/y was mainly due to the higher sales price of petrochemical products and better operation compared to last year when PRC experienced blackout event in September. In addition, the revised commercial arrangements with founding shareholders positively impacted the net profit, despite the decline of crude oil price which burdened net profit with carried forward inventory.
The reasons for the improved nine-month net profit were higher sales volume due to more stable operations, positive impact of commercial arrangements with founding shareholders and high petrochemical sale prices.
Q3 net profit increase q/q was due to higher petrochemical sale prices and higher sales of high value refined products (gasoline, diesel and jet fuel).